Consolidated Financial Statements' Components

12 Months Ended

Dec. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

CONSOLIDATED FINANCIAL STATEMENTS' COMPONENTS

Depreciation, Amortization and Accretion

Depreciation, amortization and accretion consisted of the following for the periods stated:


	For the Year Ended December 31,
(Dollars in thousands)	2021		2020		2019

Depreciation
Leasehold improvements	$	88	$	57	$	63
Asset retirement costs	(87)		(643)		(766)
Paging and computer equipment	3,797		5,291		6,526
Furniture, fixtures and vehicles	258		307		374
Total depreciation	4,056		5,012		6,197
Amortization
Intangible assets	417		2,500		2,500
Capitalized software development costs	5,357		1,073		—
Total amortization	5,774		3,573		2,500
Accretion	616		471		552
Total depreciation, amortization and accretion expense	$	10,446	$	9,056	$	9,249

Accounts Receivable, net

Accounts receivable was recorded net of an allowance of $1.4 million and $1.7 million for the years ended December 31, 2021 and 2020, respectively. Accounts receivable, net included $7.1 million and $7.0 million of unbilled receivables for the years ended December 31, 2021, and 2020, respectively. Unbilled receivables are defined as the Company's right to consideration in exchange for goods or services that we have transferred to the customer but have not yet billed for, generally as a result of contractual billing terms.

Property and Equipment, net

Property and equipment, net consisted of the following for the periods stated:


	Useful Life (In Years)	For the Year Ended December 31,
(Dollars in thousands)		2021		2020

Leasehold improvements	lease term	$	3,307	$	3,628
Asset retirement costs	1-5	2,307		3,717
Paging and computer equipment	1-5	89,844		92,608
Furniture, fixtures and vehicles	3-5	3,668		3,517
Total property and equipment		99,126		103,470
Accumulated depreciation		(92,380)		(95,655)
Total property and equipment, net		$	6,746	$	7,815

For purposes of assessing our asset retirement costs, we completed a review of the estimated useful life of our transmitter assets during the fourth quarter of 2021 (that are part of paging and computer equipment). This review was based on the results of our long-range planning and network rationalization process and indicated that the expected useful life of the last tranche of the transmitter assets was no longer appropriate. As a result of that review, the expected useful life of the final tranche of transmitter assets was extended from 2025 to 2026. This change resulted in a revision of the expected future depreciation expense for the transmitter assets and an immaterial impact to the consolidated financial statements beginning in 2022. We believe these estimates remain reasonable at the present time, but we can give no assurance that changes in technology, customer usage patterns, our financial condition, the economy or other factors would not result in changes to our transmitter decommissioning plans. Any further variations from our estimates could result in a change in the expected useful lives of the underlying transmitter assets and operating results could differ in the future by any difference in depreciation expense. The extension of the depreciable life was accounted for as a change in accounting estimate.